Under what circumstances must an Itan franchisee obtain cyber and business interruption insurance?

According to Itan's 2025 Franchise Disclosure Document, franchisees must obtain and maintain cyber insurance and business interruption insurance for technology disruptions if requested by Itan. This requirement is part of the franchisee's responsibility to protect against various technology-related risks.

This means that as an Itan franchisee, you may be required to purchase and maintain these specific insurance policies. The franchisor can request these policies at their discretion, so it is important to be prepared for this potential expense. Cyber insurance typically covers costs associated with data breaches, cyber attacks, and other technology-related liabilities. Business interruption insurance can help cover lost income and expenses if a technology disruption temporarily halts business operations.

Franchisees should clarify with Itan the specific circumstances under which these insurance policies would be required, the minimum coverage amounts, and any preferred insurance providers. Understanding these requirements upfront will help in budgeting and planning for the business. It is also important to note that the franchisee is solely responsible for protecting against computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures, date-related problems, and attacks by unauthorized persons, regardless of whether cyber and business interruption insurance is in place.